...FIN 370 Week 1 Individual Assignment Defining Financial Terms Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/fin-370-week-1-individual-assignment-defining-financial-terms/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) Finance System including circulation for money, grant of credit, investment opportunities, and banking faculties Without finance, there would be no resource allocations for operating or functional expenditures. Efficient market Efficient market, information is simultaneously available with corresponding funds example – stock market To make intellectual and well-intended fiscal decisions, information pertaining to funds must be readily accessible and available to provide insight and information for clients/investors/brokers. Primary market A market where the security is purchased directly from the issuer by the investor The primary market allows companies to offer bonds and stock to the public for the first time. It is closely related to the secondary market dependent upon one another to be most effective. Secondary market The transactions of stock from investors and dealers without the involvement of the company This market allows for the trading and selling of shares in stock. Without this market, the stock market would not exist...
Words: 3811 - Pages: 16
...Defining Financial Terms 1 University of Phoenix Inthiravanh Amphonephong Defining Financial Terms FIN/370 Jason Bruno May 11, 2011 Defining Financial Terms 2 Financial Terms 1. FINANCE: A branch of economic that deals with resource management ROLE: Finance is any area of study that helps get manage or invest the money. There is business finance, investment finance, home finance, car finance, and many other types. For most people managing their own money, personal finance is the most important type of finance. 2. Efficient Market: Market efficiency has varying degrees: strong, semi-strong, and weak stock prices in a perfectly efficient market reflect all available information. These differing levels, however, suggest that the responsiveness of stock prices to relevant information may vary. Essentially, it means that the market is performing as anticipated and has been not been effected by current news reports. This is good news for investors as it allows some level of predictability. ROLE: Last week’s report on the U.S. increased unemployment rate had an impact on stock performance. 3. Primary Market: The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold. Defining Financial...
Words: 1615 - Pages: 7
...Running head: DEFINING FINANCIAL TERMS Defining Financial Terms University of Phoenix Defining Financial Terms a. Finance: “Financial management is concerned with the maintenance and creation of economic value or wealth” (Keown, Martin, Petty, & Scott, 2005, p. 4). • Role in finance: Finance within a company is vital since it leads toward creating wealth. It helps make decisions such as when to introduce new products, when to invest in new assets, and when to borrow money. (Keown et al., 2005, p. 4). b. Efficient Market: “A market in which the values of all assets and securities at any instant in time fully reflect all available public information” (Keown et al., 2005, p. 16). • Role in finance: To provide quick information with accurate and right prices. c. Primary Market: “Transactions in securities offered for the first time to potential investors” (Keown et al., 2005, p. 484). • Role in finance: Provide a channel for sale of new securities. In addition, it also provides a variety of opportunities to those who issue securities such as corporations, or government, to raise resources to meet their requirements within their obligations. d. Secondary Market: “The market in which stock previously issued by the firm trades” (Keown et al., 2005, p. 11). • Role in finance: To provide a place for investors/public an efficient place to trade his/her securities. For management of firms, secondary markets serve as control...
Words: 878 - Pages: 4
...Running Head: Defining Financial Terms Defining Financial Terms University of Phoenix, SF Campus Michael Charley FIN 370 – Finance for Business December 8, 2010 Instructor: Deepak A. Patel Finance is to apply for a credit loan to finance a home, car, and business, from a Bank when funds are needed for this type of huge purchase * Efficient market- Profit driven individuals that act on their own; where all assets, securities reflect any and all available public information at any instant in time; Investors also make sure the price reflects appropriately the expected earnings and the risks that are involved as well as the value of the firm Role in Finance- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Conversely, an inefficient market is one in which there is limited information available for making rational investment decisions and limited trading volume. * Primary market- When new trades are put on the market that have not been sold or traded to investors. Role in Finance- Primary markets enable firms to raise capital through the sale of financial assets. Businesses are able to access potential investors that are outside its immediate influence. Businesses have to meet...
Words: 1562 - Pages: 7
...Defining Financial Terms Mark Wooldridge FIN 370 January 23, 2013 Dr. David Di Sciascio • Finance: The study of how people and businesses evaluate investments and raise capital to fund them. Within in all aspects of business such as management, marketing and production these areas of a company need to understand the aspects that finance has on their areas. • Efficient market: the indication that the worth or price of stocks or alternative investment in an organization are precisely displayed and are accurate account of the value of the investment. • Primary market: A market that is new looking to obtain funds and securities to fund the new company. • Secondary market: A market where securities and funds have already been setup. In this market the securities are being transferred from one investor to another. • Risk: measurable prospect of the loss that investors can take when purchasing securities. • Security: is a negotiable instrument that represents a financial claim. The securities can take the form of a stock, a bond or a debt agreement. • Stock: Where a publically traded company that sells equity within their organization to the public. In modest terms means that the stockholder is actually a partial owner of the company. • Bond: is in term like a long term loan issued by companies to investors where over time the company pays a fixed interest rate to the holder over the life time of the bond that was issued. • Capital: In the aspect of Finance represents the...
Words: 452 - Pages: 2
...The DNA of the CFO A study of what makes a chief financial officer 2010 Our thanks to nearly 700 CFOs who participated in the study and, in particular, to those who shared their insights and personal experience of the role in a series of interviews: Giacomo Baizini CFO, Evraz Ben Noteboom CEO, Randstad Srikanth Balachander CFO, Bharti Airtel Caroline Raggett Managing Director, London financial officers’ practice, Russell Reynolds Associates Evelyn Bourke CFO, Friends Provident Stephen Carver Media and crisis management expert, Cranfield School of Management Ian Dyson (formerly) CFO, Marks & Spencer Luigi Ferraris CFO, Enel Andy Halford CFO, Vodafone Simon Henry CFO, Royal Dutch Shell René Hooft Graafland CFO, Heineken Juha Laaksonen CFO, Fortum Patrick Regan CFO, Aviva Simon Ridley FD, Standard Bank Hans-Peter Ring CFO, EADS Sue Round Head of Investments, Ecclesiastical Robin J Stalker CFO, Adidas Firoz Tarapore CFO, Dubai Aerospace Enterprise Tim Tookey CFO, Lloyds Banking Group Rob Murray CFO, Coca-Cola Hellenic B Document title Additional text In this report Executive summary 2 Contributing to strategy 4 A broader business role 6 Core competencies remain key Future focus on stakeholder communication 10 12 and 18 The CFO’s contribution 14 Staging post or career destination? 20 A toolkit for the aspiring CFO 22 Demographics 26 What makes a CFO 28 ...
Words: 15852 - Pages: 64
...Individual Assignment: Defining Financial Terms Resource: Financial management: Principles and applications Define the following terms and identify their roles in finance: • Finance - The management of revenues or other liquid resources of a government, business, group or individual; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking, investments and credit. It can simply be defined as sell on credit or commercial activities that are study to manage capital and assets. Finance is an important part of any organization because it deals with resource allocation, accounting, resource management, and investments. • Efficient market - A market in which the values of securities at any instant in time fully reflect all available information, which results in the market value and the intrinsic value being the same. Efficient market is an integral part of understanding the value of shares and value of shareholders. In doing so, financial managers will have better information in making decision in terms of maximization of shareholder wealth. • Primary market- Transactions in securities offered for the first time to potential investors. Is the main market to which you are selling or buying directly from the issuer at par value (e.g. corporate bond). It is the company or any entity that the securities come from. In order for a stock to be considered in the primary market, the company or other...
Words: 783 - Pages: 4
...Individual Assignment: Defining Financial Terms • Resource: Financial Management: Principles and Applications • Define the following terms and identify their roles in finance: Finance- A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Basically, finance deals with matters related to money and the markets. Efficient market- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Primary market- The primary market is the market for new securities issues. In the primary market the security is purchased directly from the issuer. Secondary market- A secondary market is where investors purchase securities or assets from other investors, rather than from issuing companies. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Risk- Risk is defined as the variability of returns from an investment, the greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Security- Security is collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate...
Words: 476 - Pages: 2
...Indian Financial Code Summary The Indian financial system is suffering from the problems of lack of financial inclusion, growth of unregulated shadow market, slow pace of innovation and the challenges of financial integration. It is felt that the present code of the financial sector need to be reviewed and altered, while keeping in mind the present needs of the economy. This is because most of the laws are very old, there are overlaps and inconsistencies, and there is lack of clarity in terms of regulations due to the presence of a number of regulators. It is also argued that the laws in India are traditionally evolved on a problem by problem basis. With the advent of the New Economic Policy in 1991, substantial economic liberalisation took place in India. Between 1991 and 2002, progress was made in four areas. Firstly, capital controls were substantially reduced to give Indian Firms access to foreign market. Also, a new pension system was evolved and the monopolies of the public sector in the insurance field were broken up. This led to the formation of the new Insurance regulator, Insurance regulator and Development Agency. Additionally, significant increase in the equity market as a mechanism to raise finance by firms led to the formation of the financial market regulator SEBI. Also infrastructure institutions, National stock exchange and National Security Depository were also set up. Although, these moves were taken up in the right direction but they were considered to be...
Words: 1972 - Pages: 8
...Defining Financial Terms 1. Finance: Finance is the science of the management of money and other assets. This is essential for businesses with importance to capital and holdings. (Titman, Keown, & Martin, 2011) 2. Efficient Market: Efficient market is defined as a price where the holdings show both current as well as relevant figures; the assets fundamentally have their actual prices. The affiliation to finance is that the statement of information efficiency is operating in asset management with respect to their assessments. 3. Primary Market: Primary market is defined as a market relating to new securities where the securities are sold first (Titman, Keown, & Martin, 2011) . The securities are directly purchased from the issuer. This is important in finance ability as an importance of the fact that the growth of long-term capital through the issuance of securities is a necessary issue in finance. 4. Secondary Market: Secondary market is defined as where securities are traded that has earlier been issued within the primary market (Titman, Keown, & Martin, 2011). Usually, the securities are issued in either public offering or private. This is necessary within finance because these markets provide liquidity to stake holders. 5. Risk: Risk is defined as a possibility when the investment might potentially be unsuccessful to receive the expected returns, which may result in the loss of the original investment. It is very important within finance to assess...
Words: 650 - Pages: 3
...Defining Financial Terms 1. Finance: Finance means the dealing of providing funds and capital for earnings. In addition it includes getting money for a particular reason. This is a vital act because of the fact that it involves the administration of both capital as well as holdings. 2. Efficient Market: This is a place where the price of holdings proves both current as well as relevant figures; the assets fundamentally have their actual prices. The relationship to finance is that the statement of information effectiveness is utilized in asset management with respect to their valuation. 3. Primary Market: This is the market relating to new securities where the securities are sold first. The securities are directly purchased from the issuer. This is significant in a finance capacity as a consequence of the fact that the growth of long-term capital through the issuance of securities is an essential issue in finance. 4. Secondary Market: This is a place where refuges are traded that has earlier been issued within the primary market. Usually, the securities are issued in either public offering or private. This is essential within finance because these markets provide liquidity to stake holders. 5. Risk: Prospect is there that the investment might possibly be unsuccessful to receive the projected returns, that may subsequently result in the loss of the original investment. It is fundamental within finance to assess risk so that the possibility of not receiving...
Words: 700 - Pages: 3
...Defining Defining Financial Terms 1. Finance – a discipline that explains the ability to manage money, credit banking, assets and investments. Finance looks at money and anything that is related to money in the market. The purpose of finance is to aid any company with an ability to manage money. 2. Efficient Market – the level in where the stock prices will reflect all of the available and significant information. The three different levels of market efficiency are ; weak, semi-strong, and strong. This level of market efficiency can suggest that stock prices are directly connected and will respond to the level of relevant information. 3. Primary Market – This market issues new securities on an exchange market. The primary market can also be called a “new issue market” or (NIM). The primary market is compiled of a group of underwriters that are part of investment banks and they will set the price range for a number of specific securities and will directly oversee the sales to investors. 4. Secondary Market – In this market investors will purchase securities or assets from other investors as opposed to purchasing them from the corporations that issue them. NASDAQ and The New York Stock Exchange are the primary examples of a secondary market. 5. Risk – the gamble that the return on an investment will be different than the original projected return. 6. Security – This is a instrument that represents ownership (stocks), the right to ownership (derivatives), or a debt agreement...
Words: 633 - Pages: 3
...Defining Financial Terms 1. Finance Finance is a discipline that deals with issues related to money and markets. According to Keown, Martin, Petty, and Scott (2005) “The financial management is concerned with the maintenance and creation of economic value or wealth” (p. 5). On the other hand, Mayo (2007) states that finance is the study of money and its management as well as the allocation of resources in the world of uncertainty. Finance also deals with the decision-making process whose primary goal is to create wealth. 2. Efficient market Efficient market is one of the 10 simple principles that is necessary to understand in order to understand finance. According to Keown, Martin, Petty, and Scott (2005) the efficient market is characterized by “a large number of profit-driven individuals who act independently. Under the efficient market hypothesis, information is reflected in security prices with such speed that there are no opportunities for investors to profit from publicly available information” (p. 17). Likewise, Mayo (2007) is in support of this by stating “An important implication of this theory of efficient markets is that you cannot consistently beat the market; rather, you will earn a return consistent with the market return and the amount of risk you bear” (p. 45). 3. Primary Market According to Keown, Martin, Petty, and Scott (2005) primary markets are markets in which securities are offered to first time potential investors “A primary market is a market...
Words: 876 - Pages: 4
...FIN/370 Week One: Defining Financial Terms 1. Finance: Is the study of how people and businesses evaluate investments and raise capital to fund them. The role of finance is to assist the corporation in money management. 2. Efficient Market: Is a hypothesis that suggests that market is fair in their pricing. The role of an efficient market is to make it so no person can make a huge return without being risker in their initial investment. 3. Primary Market: A primary market issues new securities on an exchange. The role of the primary market is for the issuing companies or group to receive cash proceeds from the sale, which is then used to fund operations or expand their business. 4. Secondary Market: Is the market where investors purchase securities or assets from other investors. NASDAQ is an example of a secondary market. Unlike the primary market, the cash proceeds in the secondary market go to the investor rather than the underlying company or entity directly. 5. Risk: Is the chance that an investor’s return will be different than expected. An investor is taking a risk when he/she is involved in investments that can possibly lost money. Knowing your risk is one of the most important things to know when investing your time and money in a business. 6. Security: Is a contract that represents ownership, a debt agreement, or the rights to ownership. Value can be assigned to a security such as; bond, stock, or/and note. 7. Stock: Is a form of security...
Words: 600 - Pages: 3
...Starting with the End in Sight: Integrating Finance After a Merger 2 When two companies merge, integrating their Finance functions is a major imperative. Variations in financial standards and procedures can prevent the merged entity’s Finance function from effective daily operations, impacting both internal and external stakeholders. Integration of this key function is also time-sensitive: the entity’s leaders, not to mention investors, demand consolidated financial statements, earnings and projections as soon as possible. Additionally, a majority of the potential gains from a merger cannot be achieved without committed support from Finance. Many companies recognize this challenge and give substantial attention to financial integration soon after announcing the deal. However, this urgency creates its own problems. Under time pressure, finance professionals will feel rushed to combine disparate numbers and harmonize divergent processes. If they do not yet have a clear vision of the new company’s future state, they may implement manual temporary work-arounds, such as preparing manual reconciliations of customer accounts, that require incremental work effort, cost and risk to Finance. By focusing only on interim integration work and not considering the future state in parallel, many companies risk that the manual interim state will one day become the future state. Maintaining disparate and manually integrated systems limits opportunity for future standardization and cost...
Words: 3161 - Pages: 13
